Embrace digital, lift profits

Companies that successfully transform themselves into digital operations are over 25 per cent more profitable than those those that don't, according to analyst and author Didier Bonnet.

"If you run your transformation properly, [you face a] 26 per cent potential profit advantage."
Didier Bonnet, Senior vice-president, Capgemini Consulting

Embrace digital, lift profits

The figure comes from research contained in the book Leading Digital, co-authored by Bonnet, a senior vice-president at strategy group Capgemini Consulting.

Speaking to BlueNotes on video, Bonnet said the research attempted to quantify the financial impact of digital transformation on a number of listed companies.

“What we found was if you invest in technology, you get a little bit of an advantage in terms of efficiency, on sales in particular, so you sell more with the same number of people," he said.

“But the main finding was really around profitability. If you run your transformation properly, [you face a] 26 per cent potential profit advantage. That tends to get the interest of CFOs because it makes a marked difference to business performance."

Bonnet said the research focussed digital governance in particular and the way digital and IT programs were organised.

He also touched on which companies have made the biggest impact in their digital transformations and the importance of a digital culture. Watch the video about the find out more.

Phoebe O'Sullivan is a contributing author for BlueNotes

The views and opinions expressed in this communication are those of the author and may not necessarily state or reflect those of ANZ.

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